2025 (7) TMI 1570 - AT - Income Tax

Rejection of application u/s 12A and application u/s 80G - failure to submit the certified copy of the trust deed - HELD THAT - After hearing both parties and perusing the material available on record we find that the rejection of applications u/s 12A and 80G was due to procedural default specifically the nonfurnishing of a certified copy of the trust deed which the assessee now states is ready for submission. In the interest of justice and fair play and since the default was procedural and not substantive we are of the view that the matter should be restored to the file of the CIT (Exemption) Kochi for fresh consideration. Appeals filed by the assessee stand allowed for statistical purpose.

Summary

The Appellate Tribunal (ITAT Cochin) heard two appeals filed by the assessee-trust against the rejection of applications for final registration under section 12A and approval under section 80G by the Commissioner of Income Tax (Exemption), Kochi. The rejection, dated 17.12.2024, was based on the non-submission of a certified copy of the original trust deed, a document dating back 70 years, which the assessee could not procure in time despite efforts. The Tribunal noted that the failure to submit the trust deed was a procedural default, not a substantive deficiency, and the assessee represented that the document was now ready for submission. The Departmental Representative did not oppose the prayer for remand. Relying on principles of "interest of justice and fair play," the Tribunal held that the matter should be restored to the file of the CIT (Exemption) for fresh consideration on merit. Both appeals (ITA Nos. 142 and 143/Coch/2025) were allowed for statistical purposes, setting aside the rejection orders to enable the assessee to submit the required documents and have their applications reconsidered.